Animal Health: 2Q EPS Preview - Focus Remains On Macro, ELAN Best Positioned

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Animal Health: 2Q EPS Preview - Focus Remains On Macro, ELAN Best Positioned

J P M O R G A N North America Equity Research

10 July 2026

Animal Health

2Q EPS Preview - Focus Remains On Macro, ELAN

Best Positioned

Heading into 2Q animal health results, investor attention is squarely on companion Pharmaceuticals — Major &

animal fundamentals. Following Zoetis’ 1Q update, the market has worried about Specialty

rising competition in dermatology and parasiticides (and potential longer-term Chris Schott, CFA AC

pricing pressure) alongside a challenging macroeconomic backdrop (with vet (1-212) 622-5676

visits continuing to decline). We view these concerns as overdone – while new christopher.t.schott@jpmorgan.com

launch promotion activity will impact several categories (particularly derm), we Ekaterina V Knyazkova, CFA

expect these initiatives to be shorter-term in nature and ease later in 2026/into 2027. (1-212) 622-9576

And on the macro front, we continue to expect resilient pet owner spending, ekaterina.v.knyazkova@jpmchase.com

especially with pandemic-era pets starting to age. Ethan Brown

(1-212) 622-4928

ethan.brown@jpmchase.com

On specific names we are expecting in-line updates for ELAN and IDXX and a

Hardik Parikh, CFAmore challenging quarter for ZTS (as the market is broadly expecting). For ELAN,

(1 212) 622-2875

we see the company well positioned with recent launches like Credelio Quattro and hardik.k.parikh@jpmorgan.com

Zenrelia continuing to support upside to top-line and bottom-line estimates and the

Taylor Hanley

livestock market (which accounts for ~50% of the company’s sales) doing well. We (1-212) 622-0790

also like the longer-term setup for IDXX with COVID pets aging, InVue Dx taylor.hanley@jpmchase.com